32000. This division shall be known and may be cited as theCalifornia Urban Waterfront Area Restoration Financing Authority Act.

32001. The Legislature finds and declares that it is essential thatthe state, in cooperation with local governments, use all practicalmeans and measures to restore, revitalize, and develop, in aneconomically and environmentally sound manner, the coastal and inlandurban waterfront areas of the state. The Legislature further finds that existing conditions in some ofthe state's coastal urban waterfront areas prevent the attainment ofone or more of the basic goals of the state set forth in Section30001.5 for the coastal zone, and that existing sources of fundingare not adequate to restore these areas in accordance with thosegoals. The Legislature further finds that properly planned development ofcoastal and inland urban waterfronts with public recreationfacilities, shoreline access facilities, visitor-serving commercialfacilities, or coastal-dependent facilities, or with public worksnecessary for the implementation or preservation of an urbanwaterfront project, will promote attainment of the basic goals of thestate for the coastal zone and will stimulate economic developmentand promote employment in coastal and inland urban waterfront areas.

32002. As to urban waterfront areas in the coastal zone, thepurpose of this division is to carry out and make effective Chapter 7(commencing with Section 31300) of Division 21 and, to that end,provide an economically feasible method of financing urban waterfrontrestoration.

32003. This division is necessary for the welfare of the state andits inhabitants and shall be liberally construed to implement itspurposes.

32020. Unless the context otherwise requires, the definitions inthis article govern the interpretation of this division.

32021. "Authority" means the California Urban Waterfront AreaRestoration Financing Authority established pursuant to Section32050, and any board, commission, department, or officer succeedingto the functions thereof or to whom the powers conferred upon theauthority by this division shall be given.

32023. "Coastal zone" means that area of the state defined insubdivision (a) of Section 31006, except that it includes lands inContra Costa County from the Richmond-San Rafael Bridge north andeast to the termination of the jurisdiction of the San Francisco BayConservation and Development Commission, as described in Section66610 of the Government Code, as well as any adjacent uplands,managed wetlands, marshes, and diked lands that significantly affectthe environmental quality of the bay, or that are directly related tothe public use and enjoyment of the San Francisco Bay.

32025. "Cost," as applied to a project, or portion thereof,financed under this division, means all, or any part of, the costs ofconstruction and acquisition of all lands, structures, real orpersonal property, rights, rights-of-way, franchises, easements, andinterests acquired or used for a project, the cost of demolition orremoval of any buildings or structures on land so acquired, includingthe cost of acquiring any lands on which buildings or structures maybe removed, the cost of all machinery and equipment, financingcharges, interest prior to, during, and for a period after completionof the construction, as determined by the authority, provisions forworking capital, reserves for principal and interest, and forextensions, enlargements, additions, replacements, renovations, andimprovements, the cost of architectural, engineering, financial, andlegal services, plans, specifications, estimates, administrativeexpenses, and other expenses necessary or incident to determining thefeasibility of constructing any project, or incident to theconstruction or acquisition or financing of any project.

32025.5. "Metropolitan statistical area" means any area so definedby the federal Office of Management and Budget.

32026. "Participating party" means any public or private entity,profit or nonprofit, including, but not limited to, any municipality,county, district, joint powers agency, person, company, corporation,partnership, firm, trust, or foundation, engaged in a project withinthe State of California, which obtains financing pursuant to theterms of this division.

32027. "Project" means an urban waterfront restoration activitylocated wholly or partly within the coastal zone for which a plan ofurban waterfront restoration has been approved pursuant to Section32059 and an urban waterfront restoration activity located within theterritory of the Sacramento-Yolo Port District, the Stockton PortDistrict, or on a river, lake, or reservoir located within ametropolitan statistical area for which a plan of urban waterfrontrestoration has been approved pursuant to Section 32059.5. Projectincludes, but is not limited to, lands, buildings, or roads, andimprovements thereto, work, rehabilitation, structure, or property,real or personal, located wholly or partly within the coastal zoneor within the territory of the Sacramento-Yolo Port District, theStockton Port District, or on a river, lake, or reservoir locatedwithin a metropolitan statistical area, providing or designed toprovide visitor serving commercial facilities, transient visitoraccommodations, coastal or inland waterfront dependent industry,public utility systems, mass transit facilities, and publicrecreation and shoreline access facilities, including, but notlimited to, parks, stairways, piers, and wharves, boat berthingfacilities, parking facilities, visitor service centers, orinterpretive centers, shoreline protection and erosion controlfacilities, and administrative facilities necessary for the operationof coastal dependent activities. Project does not include newpermanent residential structures, office structures for nonmaritimepurposes on lands subject to the public trust for commerce,navigation, and fisheries, noncoastal dependent industrialfacilities, or other noncoastal related uses, or industrialfacilities or other uses that are unrelated to an inland waterfront.A project may include office structures on lands not subject to thepublic trust for commerce, navigation, and fisheries, or officestructures for maritime purposes on lands subject to the public trustfor commerce, navigation, and fisheries, if the State CoastalConservancy finds that the project physically includes all of theelements specified in paragraph (2) of subdivision (b) of Section32059.

32028. "Revenue" means all rents, receipts, purchase payments, loanrepayments, proceeds of bonds, and all other income or receiptsderived by the authority from the sale, lease, or other dispositionof projects, or the making of loans to finance projects, and anyincome derived from the investment of any money in any fund oraccount of the authority.

32050. (a) There is in state government the California UrbanWaterfront Area Restoration Financing Authority. The authorityconstitutes a public instrumentality and a political subdivision ofthe State of California, and the exercise by the authority of powersconferred by this division is the performance of an essential publicfunction. (b) The authority shall consist of five members, the Director ofFinance, the Controller, the Treasurer, the Secretary of theResources Agency, and the executive director of the conservancy. TheTreasurer shall serve as chairman of the authority. (c) Each of the members of the authority may select a designeefrom the member's agency to act for the member and represent themember at all meetings of the authority. (d) The first meeting of the authority shall be convened by theTreasurer.

32051. All members shall serve thereon without compensation asmembers of the authority.

32052. This division shall be administered by the authority whichshall have, and is hereby vested with, all powers reasonablynecessary to carry out its powers and responsibilities.

32053. The authority shall maintain an office in the City ofSacramento.

32054. The chairman shall appoint an executive director who shallnot be a member of the authority and who shall serve at the pleasureof the authority and shall employ the staff of the conservancy andother necessary persons to enable the authority to properly performthe duties imposed upon it by this division. The executive directorshall receive compensation as fixed by the authority. The authoritymay delegate to the executive director the power to enter contractson behalf of the authority.

32055. The authority may, in accordance with Chapter 3.5(commencing with Section 11340) of Part 1 of Division 3 of Title 2 ofthe Government Code, adopt the necessary rules and regulations tocarry out this division.

32056. (a) The Attorney General shall be the legal counsel for theauthority, but, upon approval of the Attorney General, which approvalshall not be unreasonably withheld, the authority may employ legalcounsel as, in its judgment, is necessary or advisable to enable itto carry out the duties and functions imposed on it by this division,including employment of bond counsel as deemed advisable inconnection with the issuance and sale of bonds. (b) The Director of Finance shall be the treasurer of theauthority.

32057. Subject to the conditions, restrictions, and limitations ofSection 32059, the authority shall have the power to do all thefollowing: (a) Adopt bylaws for the regulation of its affairs and the conductof its business. (b) Adopt an official seal. (c) Sue and be sued in its own name. (d) Issue bonds, including, at the option of the authority, bondsbearing interest that is taxable for the purpose of federal incometaxation, to pay the cost of any project. (e) Engage the services of private consultants to renderprofessional and technical assistance and advice in carrying out thepurposes of this division. (f) Employ and fix compensation of bond counsel, projectexpediters, financial consultants, and other advisors as may benecessary, in its judgment, in connection with the issuance and saleof any bonds or other obligations of the authority. (g) Contract for engineering, architectural, accounting, or otherservices of appropriate state agencies as may be necessary, in itsjudgment, for the successful development of the project. (h) Pay the reasonable costs of consulting engineers, architects,accountants, and construction, land use, recreation, andenvironmental experts employed by any participating party if, in itsjudgment, those services are necessary for the successful developmentof the project. (i) Take title to, and sell by installment sale or otherwise,lands, structures, property, real or personal, rights, rights-of-way,franchises, easements, and other interests in lands which arelocated within the state as it may deem necessary or convenient forthe financing of a project, upon terms and conditions as consideredby it to be reasonable. (j) Receive and accept from any source, loans, contributions, orgrants for, or in aid of, the construction, financing, or refinancingof a project, or any portion thereof, in either money, property,labor, or other things of value. (k) Make secured or unsecured loans to any participating party inconnection with the financing of a project in accordance with anagreement between the authority and the participating party, exceptthat no loan shall exceed the total cost of the project as determinedby the participating party and approved by the authority. (l) Make secured or unsecured loans to any participating party inaccordance with an agreement between the authority and theparticipating party to refinance indebtedness incurred by theparticipating party in connection with projects undertaken andcompleted. (m) Mortgage all or any portion of its interest in a project andthe property on which any project is located, whether owned orthereafter acquired, including the granting of a security interest inany property, tangible or intangible, and to assign or pledge all orany portion of its interests in mortgages, deeds of trust,indentures of mortgage or trust or similar instruments, notes, andsecurity interests in property, tangible or intangible, ofparticipating parties to which the authority has made loans, and therevenues therefrom, including payment or income from any interestowned or held by the authority, for the benefit of the holders ofbonds issued to finance the project. (n) Lease to a participating party the project being financed,upon terms and conditions that the authority deems proper, and tocharge and collect rents therefor, and to terminate any lease uponthe failure of the lessee to comply with any of the obligationsthereof, and to include in any lease, if desired, provisions that thelessee shall have options to renew the lease for a period orperiods, and at rents as determined by the authority, to purchase anyor all of the project, or that, upon payment of all of theindebtedness incurred by the authority for the financing of theproject, the authority may convey any or all of the project to thelessee or lessees. (o) Charge and equitably apportion among participating parties itsadministrative costs and expenses incurred in the exercise of thepowers and duties conferred by this division. (p) Obtain, or aid in obtaining, from any department or agency ofthe United States or of the State of California, or any privatecompany, any insurance or guarantee as to, or for, the payment orrepayment of interest or principal, or both, or any part thereof, onany loan, lease, or obligation or any instrument evidencing orsecuring the same, made or entered into pursuant to this division;and, notwithstanding any other provision of this division, to enterinto any agreement, contract, or any other instrument with respect toany insurance or guarantee, to accept payment in the manner and formas provided therein in the event of default by a participatingparty, and to assign any insurance or guarantee as security for theauthority's bonds. (q) Enter into any and all agreements or contracts, execute anyand all instruments, and do and perform any and all acts or thingsnecessary, convenient, or desirable for the purposes of the authorityor to carry out any power expressly given in this division. (r) Invest any moneys held in reserve or sinking funds, or anymoneys not required for immediate use or disbursement, at thediscretion of the authority, in obligations that are authorized bylaw for the investment of trust funds in the custody of theTreasurer.

32058. The authority shall establish criteria for the selection ofprojects to receive financial assistance from the authority. Theproject selection criteria shall be based upon the economic soundnessof the project itself and a reasonable expectation that allfinancial obligations of the project can be met by participatingparties.

32059. (a) No project located wholly or partially within thecoastal zone shall be eligible for approval unless it has beenapproved by the conservancy and is located in a part of the coastalzone for which a plan for urban waterfront restoration has beenapproved by the conservancy pursuant to Chapter 7 (commencing withSection 31300) of Division 21. (b) The conservancy shall approve a plan for the purposes ofutilizing the financing provisions of this division only if it findsboth of the following: (1) Existing conditions prevent the attainment of one or more ofthe basic goals of the state for the coastal zone, as identified inSection 30001.5. (2) The proposed plan provides for public access or publicrecreation benefits, environmental enhancement, and has a potentialfor employment development and economic stimulation.

32059.5. (a) No project located within the territory of theSacramento-Yolo Port District, the Stockton Port District, or on ariver, lake, or reservoir within a metropolitan statistical areashall be eligible for approval unless it has been approved by theconservancy and a plan for urban waterfront restoration has beenapproved by the conservancy. (b) The conservancy shall approve a plan for the purposes ofutilizing the financing provisions of this division for projectsspecified in subdivision (a) only if it finds that the proposed planprovides for public access or public recreational benefits, providesfor environmental enhancement, and has a potential for employmentdevelopment and economic stimulation. (c) Fifty million dollars ($50,000,000) shall be reserved forprojects on a river, lake, or reservoir in a metropolitan statisticalarea.

32060. (a) The California Urban Waterfront Area RestorationFinancing Authority Fund is hereby created in the State Treasury.Notwithstanding Section 13340 of the Government Code, all moneys inthe fund are continuously appropriated to the authority for carryingout the purposes of this division. The authority may pledge any or all of the moneys in the fund assecurity for payment of the principal of, and interest on, anyparticular issuance of bonds issued pursuant to this division, and,for that purpose, or as necessary or convenient to the accomplishmentof any other purpose of the authority, may divide the fund intoseparate accounts. All moneys accruing to the authority pursuant tothis division from any source shall be deposited in the fund. (b) Subject to priorities that may be created by the pledge ofparticular moneys in the fund to secure any issuance of bonds of theauthority, and subject further to reasonable costs that may beincurred by the authority in administering the program authorized bythis division, all moneys in the fund derived from any source shallbe held in trust for the security and payment of bonds of theauthority and shall not be used or pledged for any other purpose solong as the bonds are outstanding and unpaid. However, nothing inthis section shall limit the power of the authority to make loanswith the proceeds of bonds in accordance with the terms of theresolution authorizing the bonds. (c) Pursuant to any agreements with the holders of particularbonds pledging any particular assets, revenues, or moneys, theauthority may create separate accounts in the fund to manage assets,revenues, or moneys in the manner set forth in the agreements. (d) The authority may, from time to time, direct the Treasurer toinvest moneys in the fund which are not required for its currentneeds, including proceeds from the sale of any bonds, in sucheligible securities specified in Section 16430 of the Government Codeas the authority shall designate. The authority may direct theTreasurer to deposit moneys in interest-bearing accounts in state ornational banks or other financial institutions having principaloffices in this state. The authority may alternatively require thetransfer of moneys in the fund to the Surplus Money Investment Fundfor investment pursuant to Article 4 (commencing with Section 16470)of Chapter 3 of Part 2 of Division 4 of Title 2 of the GovernmentCode. Notwithstanding Section 16305.7 of the Government Code, allinterest or other increment resulting from the investment or depositof moneys from the fund shall be deposited in the fund. Moneys inthe fund shall not be subject to transfer to any other funds pursuantto any provision of Part 2 (commencing with Section 16300) ofDivision 4 of Title 2 of the Government Code, except to the SurplusMoney Investment Fund.

32061. All expenses incurred in carrying out this division shall bepayable solely from funds provided under the authority of thisdivision, and no liability or obligation shall be imposed upon theState of California and, except as provided in Section 32116, noneshall be incurred by the authority beyond the extent to which moneyshall have been provided under this division. Under no circumstanceshall the authority create any debt, liability, or obligation on thepart of the State of California payable from any source other thanthe moneys provided under this division.

32061.5. The activities of the conservancy in carrying out itsresponsibilities under this division shall be deemed to be consistentwith and in furtherance of Chapter 7 (commencing with Section 31300)of Division 21. The conservancy may pay for its support costs associated with thisdivision from any funding source appropriated and available to itwhich may be used to fund its support activities under that Chapter7. However, the conservancy shall keep records of its supportexpenditures associated with projects which may receive any or all oftheir funding pursuant to this division and, if the authorityultimately issues bonds for any such project, the conservancy shallseek repayment of its support costs with respect to that project fromthe authority. The authority shall reimburse the conservancy forits necessary and reasonable support costs in developing projectswhich are funded pursuant to this division. Nothing in this section precludes the authority from reimbursingthe conservancy for additional costs associated with itsresponsibilities under this division.

32062. All projects financed by the authority shall be constructedor completed subject to the rules and regulations of the authority.

32063. When the principal of, and interest on, bonds of theauthority issued to finance the cost of a particular project for aparticipating party, including any refunding bonds issued to refundand refinance all or any part of the bonds, have been fully paid andretired, or when adequate provisions have been made for the paymentand retirement of the bonds, and all other conditions of anyresolution, lease, indenture, mortgage or deed of trust, securityinterest, or any other instrument or instruments authorizing andsecuring the bonds have been satisfied, and any lien created has beenreleased in accordance with the provisions thereof, the authority isauthorized, upon terms and conditions it may prescribe, to do allthings and execute releases, release deeds, reassignments, deeds, andconveyances necessary or required to convey or release its right,title, and interest in the project financed and any other instrumentspledged or transferred to secure bonds to the participating party.

32064. (a) The authority, or its executive director if authorizedby resolution of the authority, shall take official action towardsthe issuance of bonds with respect to any participating party at thenext meeting of the authority occurring more than 30 days followingthe receipt of a completed application. Official action towards theissuance of bonds may reserve the right of the authority to furtherreview an application for financing and consider terms thereof priorto the issuance of bonds therefor. (b) The authority shall take final action to approve or disapprovethe issuance of bonds to lend financial assistance to participatingparties within 60 days from the receipt by the authority of a requestfrom a participating party for action. Any request by aparticipating party shall be accompanied by evidence of fulfillmentof any and all conditions to the issuance of the bonds imposed at thetime the first action towards the issuance was taken by theauthority and copies of forms of all principal legal documents to beapproved by the authority. (c) The authority may give final approval for the issuance of thebonds upon terms it deems necessary or desirable. (d) Any action under this section shall be at the sole discretionof the authority.

32065. The authority, not later than March 31 of each year, shallsubmit to the Legislature a report of its activities for thepreceding calendar year ending December 31. The report shallinclude a listing of applications received, a listing of applicationsaccepted for financing, a specification of bonds sold, interestrates thereon, and whether bond sales were pursuant to public bid orwere negotiated, a specification of the amount of bonds authorizedbut currently unsold, a projection of the authority's needs andrequirements for the coming year, and a report of revenues andexpenditures for the preceding fiscal year.

32066. The Treasurer is the elected representative of the state toapprove the issuance of bonds issued by or on behalf of the statepursuant to this chapter to the extent this approval is required byfederal tax law.

32100. The total amount of bonds which may be outstanding at anyone time under this division shall not exceed six hundred fiftymillion dollars ($650,000,000). Bonds for which moneys or securitiesin amounts necessary to pay or redeem the principal, interest, andany redemption premium thereon have been deposited in trust shall notbe deemed outstanding for purposes of this section.

32101. The Legislature may, by statute, authorize the authority toissue bonds in excess of the amount specified in Section 32100.

32102. (a) The authority is authorized from time to time to issueits negotiable bonds to provide funds to achieve its purposes. (b) Bonds may be authorized to finance a single project for asingle participating party, a series of projects for a singleparticipating party, a single project for several participatingparties, or several projects for several participating parties.

32103. Except as otherwise expressly provided by the authority,every issue of its bonds shall be general obligations of theauthority payable from any revenues or moneys of the authorityavailable therefor and not otherwise pledged, including the proceedsof additional bonds, subject only to any agreements with the holdersof particular bonds, notes, or other obligations pledging anyparticular revenues or moneys and subject to any agreements withholders of particular bonds pledging any particular revenues.Notwithstanding that the bonds may be payable from a special fund,they shall be and deemed to be negotiable instruments for allpurposes, subject only to the bond registration provisions.

32104. Subject to the limitations in Sections 32100 and 32101, thebonds may be issued as serial bonds or as term bonds, or theauthority may, in its discretion, issue bonds of both types. Thebonds shall be authorized by resolution of the authority and shallbear the date or dates, mature at the time or times, not exceeding 50years from their respective dates, bear interest at the rate orrates, be payable at the time or times, be in the denominations, bein the form, either coupon or registered, carry the registrationprivileges, be executed in the manner, be payable in lawful money ofthe United States of America at the place or places, and be subjectto the terms of redemption, as the resolution or resolutions provide.

32105. The bonds or notes shall be sold by the Treasurer within 60days after receipt of a certified copy of the authority's resolutionauthorizing the sale of the bonds, except that the authority may, atits discretion, adopt a resolution extending the 60-day period. Thesale may be a public or private sale, and for such price or pricesand on such terms and conditions, as the authority determines, aftergiving due consideration to the recommendations of any participatingparty to be assisted from the proceeds of the bonds. Pendingpreparation of the definitive bonds, the Treasurer may issue interimreceipts, certificates, or temporary bonds which shall be exchangedfor definitive bonds. The Treasurer may sell any bonds at a pricebelow the par value if the discount on any bonds sold does not exceed6 percent of the par value.

32106. Any resolution or resolutions authorizing any bonds or anyissue of bonds may contain the following provisions, which shall be apart of the contract with the holders of the bonds to be authorized:

(a) Pledging the full faith and credit of the authority, orpledging all or any part of the revenues of any urban waterfrontrestoration project or any revenue-producing contract or contractsmade by the authority with any individual, partnership, corporation,or association or other body, public or private, or other moneys ofthe authority, to secure the payment of the bonds or of anyparticular issue of bonds, subject to those agreements withbondholders as may then exist. (b) The rentals, fees, purchase payments, loan repayments, andother charges to be charged, and the amounts to be raised in eachyear thereby, and the use and disposition of the revenues. (c) The setting aside of reserves or sinking funds, and theregulation and disposition thereof. (d) Limitations on the right of the authority or its agent torestrict and regulate the use of the project or projects to befinanced out of the proceeds of the bonds or any particular issue ofbonds. (e) Limitations on the purpose to which the proceeds of sale ofany issue of bonds then or thereafter to be issued may be applied,and pledging the proceeds to secure the payment of the bonds or anyissue of the bonds. (f) Limitations on the issuance of additional bonds, the termsupon which additional bonds may be issued and secured and therefunding of outstanding bonds. (g) The procedure, if any, by which the terms of any contract withbondholders may be amended or abrogated, the amount of bonds and theholders thereof that are required to give consent thereto, and themanner in which the consent may be given. (h) Limitations on expenditures for operating, administrative, orother expenses of the authority. (i) Defining the acts or omissions to act which constitute adefault in the duties of the authority to holders of its obligations,and providing the rights and remedies of the holders in the event ofa default. (j) The mortgaging of any project and the site thereof for thepurpose of securing the bondholders. (k) The mortgaging of land, improvements, or other assets owned bya participating party for the purpose of securing the bondholders. (l) Procedures for the selection of projects to be financed withthe proceeds of the bonds authorized by the resolution, if the bondsare to be sold in advance of the designation of the projects and theparticipating parties to receive the financing.

32107. Neither the members of the authority nor any personexecuting the bonds or notes shall be liable personally on the bondsor notes or be subject to any personal liability or accountability byreason of the issuance thereof.

32108. The authority may, out of any funds available therefor,purchase its bonds or notes. The authority may hold, pledge, cancel,or resell the bonds, subject to and in accordance with agreementswith bondholders.

32109. In the discretion of the authority, any bonds issued underthis division may be secured by a trust agreement by and between theauthority and a corporate trustee or trustees, which may be theTreasurer or any trust company or bank having the powers of a trustcompany within or without the state.

32110. (a) The trust agreement or the resolution providing for theissuance of the bonds may pledge or assign the revenues to bereceived or proceeds of any contract or contracts pledge and mayconvey or mortgage the project or projects, or any portion thereof,to be financed out of the proceeds of the bonds. The trust agreementor resolution providing for the issuance of the bonds may containthe provisions for protecting and enforcing the rights and remediesof the bondholders as may be reasonable and proper and not inviolation of law, including particularly provisions specificallyauthorized to be included in any resolution or resolutions of theauthority authorizing bonds thereof. (b) Any bank or trust company doing business under the laws ofthis state which may act as depository of the proceeds of bonds or ofrevenues or other moneys may furnish indemnifying bonds or pledgesecurities as may be required by the authority. (c) The trust agreement may set forth the rights and remedies ofthe bondholders and of the trustee or trustees, and may restrict theindividual right of action by bondholders. In addition, any trustagreement or resolution may contain other provisions that theauthority may deem reasonable and proper for the security of thebondholders.

32111. Notwithstanding any other provision of law, the Treasurershall not be deemed to have a conflict of interest by reason ofacting as trustee pursuant to this division.

32112. All expenses incurred in carrying out the provisions of thistrust agreement or resolution may be treated as a part of the costof the operation of a project.

32113. Bonds issued under this division do not constitute a debt orliability of the state or of any political subdivision thereof,other than the authority, or a pledge of the full faith and credit ofthe state or any of its political subdivisions, other than theauthority, but are payable solely from the funds provided thereforunder this division. All the bonds shall contain on the face thereofa statement to the following effect: "Neither the full faith and credit nor the taxing power of theState of California is pledged to the payment of the principal of orinterest on this bond." The issuance of bonds under this division shall not directly orindirectly or contingently obligate the state or any politicalsubdivision thereof to levy or to pledge any form of taxationwhatever therefor or to make any appropriation for their payment.Nothing in this section shall prevent, or be construed to prevent,the authority from pledging its full faith and credit to the paymentof bonds or issue of bonds authorized pursuant to this division.

32114. (a) The authority may provide for the issuance of bonds ofthe authority for the purpose of refunding any bonds, notes, or othersecurities of the authority then outstanding, including the paymentof any redemption premium thereon and any interest accrued or toaccrue to the earliest or subsequent date of redemption, purchase, ormaturity of these bonds and, if deemed advisable by the authority,for the additional purpose of paying all or any part of the cost ofconstructing and acquiring additions, improvements, extensions, orenlargements of an urban waterfront restoration project or anyportion thereof. (b) The proceeds of any bonds issued for the purpose of refundingoutstanding bonds, notes, or other securities may, in the discretionof the authority, be applied to the purchase or retirement atmaturity or redemption of these outstanding bonds either on theirearliest or any subsequent redemption date or upon the purchase orretirement at the maturity thereof and may, pending the application,be placed in escrow to be applied to the purchase or retirement atmaturity or redemption on the date as may be determined by theauthority. (c) Pending this use, the escrowed proceeds may be invested andreinvested by the Treasurer in obligations of, or guaranteed by, theUnited States of America, or in certificates of deposit or timedeposits secured by obligations of, or guaranteed by, the UnitedStates of America, maturing at time or times appropriate to assurethe prompt payment, as to principal, interest, and redemptionpremium, if any, of the outstanding bonds to be so refunded. Theinterest, income, and profits, if any, earned or realized on theinvestment may also be applied to the payment of the outstandingbonds to be so refunded. After the terms of the escrow have beenfully satisfied and carried out, any balance of the proceeds andinterest, income, and profits, if any earned or realized on theinvestments thereof, shall be returned to the authority and theconservancy for use in carrying out this division. (d) The portion of the proceeds of the bonds issued for theadditional purpose of paying all or any part of the cost ofconstructing and acquiring additions, improvements, extensions, orenlargements of an urban waterfront restoration project may beinvested and reinvested by the Treasurer in obligations of, orguaranteed by, the United States of America, or in certificates ofdeposit or time deposits secured by obligations of, or guaranteed by,the United States of America, maturing not later than the time ortimes when these proceeds will be needed for the purpose of payingall or any part of the cost. The interest, income and profits, ifany earned or realized on this investment, may be applied to thepayment of all or any part of the cost or may be used by theauthority and the conservancy in carrying out this division. (e) All these bonds are subject to this division in the samemanner and to the same extent as other bonds issued pursuant to theprovisions of this division.

32115. Bonds issued by the authority are legal investments for alltrust funds, the funds of all insurance companies, banks, bothcommercial and savings, trust companies, savings and loanassociations, and investment companies, for executors,administrators, trustees, and other fiduciaries, for state schoolfunds, and for any funds which may be invested in county, municipal,or school district bonds, and these bonds are securities which mayproperly and legally be deposited with, and received by, any state ormunicipal officer or agency or political subdivision of the statefor any purpose for which the deposit of bonds or obligations of thestate, is now, or may hereafter be, authorized by law, includingdeposits to secure public funds if, and only to the extent that,evidence of indebtedness or debt securities of the participatingparty receiving financing through the issuance of these bonds whichqualify or are eligible for these purposes and uses.

32116. No liability shall be incurred by the authority beyond theextent to which moneys have been provided under this division, exceptthat, for the purposes of meeting the necessary expenses of initialorganization and operation until the date that the authority derivesrevenues or proceeds from bonds or notes as provided under thisdivision, the authority may borrow money as needed for these expensesfrom the General Fund in the State Treasury. The borrowed moneyshall be repaid with interest within a reasonable time after theauthority receives revenues or proceeds from bonds or notes asprovided under this division.

32150. The authority is not required to pay any property taxes orassessments upon, or with respect to, an urban waterfront restorationproject or any property acquired by or for the authority under thisdivision or upon the income therefrom, so long as the authority holdstitle to the project or to the property or facilities comprised inthe project. The exemption of the authority from taxation of any project ceaseswhen title to the property is transferred from the authority to anynormally taxable participating party. This section does not exemptany normally taxable participating party from taxation, including,but not limited to, taxation upon a possessory interest, with respectto any project, or the property or facilities comprised in anyproject, which may otherwise be applicable to the participatingparty.

32151. Subject to Section 32153, the existence of the authority maybe terminated by statute at any time by the Legislature. Upondissolution of the authority, the title to all properties owned by itshall, subject to the interests of any participating partiestherein, vest in and become the property of the State of Californiaand shall not inure to the benefit of any private party.

32152. This division provides a complete, additional, andalternative method for the doing of the things authorized thereby,and shall be regarded as supplemental and additional to powersconferred by other laws, except that the issuance of bonds andrefunding bonds under this division need not comply with therequirements of any other law applicable to the issuance of bonds.

32153. The State of California does hereby pledge to, and agreewith, the holders of any obligations issued under this division, andwith those parties who may enter into contracts with the authoritypursuant to this division, that the state will not limit or alter therights hereby vested in the authority to finance any project and tofulfill the terms of any loan agreement, lease, or other contractwith the authority pursuant to this division, or in any way impairthe rights or remedies of the bonds or the parties until thoseobligations, together with the interest thereon, are fully met anddischarged and those contracts are fully performed on the part of theauthority. However, nothing in this section precludes thislimitation or alteration if and when adequate provision has been madeby law for the protection of the holders of those obligations of theauthority or those entering into those contracts with the authority. The authority, as agent for the state, is authorized to includethis pledge and undertaking for the state in its obligations orcontracts.

32154. The powers granted to the authority by this division may beexercised without regard or reference to any department or agency ofthe state. All other general or special laws, or parts thereof,inconsistent with this division are hereby declared to beinapplicable to the provisions of this division. Nothing in thisdivision shall be interpreted to exempt the construction oracquisition of any urban waterfront restoration project by anyparticipating party from compliance with all applicable local, state,or federal laws and regulations.

32200. The authority may contract with any participating party forthe construction of an urban waterfront restoration project by theparticipating party. All contracts for the construction of a projectby a participating party shall provide that the participating partyis responsible for the architectural and engineering design and forthe construction and completion thereof, subject to the standards forarchitectural and engineering design as may be established, andsubject to the supervision, as the conservancy and the authority deemnecessary. The authority may agree to pay the cost of the project constructedby any participating party and to advance the costs from time totime in installments or otherwise as required by the contract for theconstruction thereof. Title to all projects shall be vested in theauthority, subject to the terms of any lease thereof to theparticipating party or the rights of a participating party under anycontract for the purchase of the project, including the payment ofthe purchase price under installment sales contracts.

32201. The authority may, as lessor or lessee, enter into leasesand agreements with any participating party relating to theacquisition, construction, and installation of any project, includingreal property, buildings, machinery, furnishings, equipment, andurban waterfront restoration facilities of any kind or character.The terms and conditions of these leases may be as mutually agreedupon. The lease may provide the means or methods by which titleshall vest in a participating party upon the termination of the leaseand shall contain other terms and conditions that the authority maydetermine. The authority may fix, revise, charge, and collect rates, rents,fees, and charges for each project. These rates, rents, fees, andcharges shall be fixed and adjusted with respect to the aggregate ofrates, rents, fees, and charges from all projects so as to providefunds sufficient with other revenues and moneys available therefor,if any, to do all of the following: (a) Pay the principal of, and the interest on, outstanding bonds,notes, or other evidences of indebtedness of the authority issuedwith respect to the urban waterfront restoration project that becomedue and payable. (b) Create and maintain reserves required or provided for in anyresolution authorizing, or trust agreement securing, the bonds. Asufficient amount of the revenues derived from a project may be setaside at regular intervals as may be provided in the resolution ortrust agreement in a sinking or other similar fund which is herebypledged to, and charged with, the payment of the principal of andinterest on these bonds as they become due, and the redemption priceor the purchase price of bonds retired by call or purchase asprovided therein. The pledge shall be valid and binding from thetime the pledge is made; the rates, rents, fees, and charges andother revenues or other moneys so pledged and thereafter received bythe authority shall immediately be subject to the lien of this pledgewithout any physical delivery thereof or further act, and the lienof this pledge shall be valid and binding as against all partieshaving claims of any kind in tort, contract, or otherwise against theauthority, regardless of whether the parties have notice thereof.The resolution or any trust agreement or any other agreement or anylease by which a pledge is created need not be filed or recordedexcept in the records of the authority. The use and disposition ofmoneys to the credit of the sinking or other similar fund shall besubject to the resolution authorizing the issuance of the bonds or ofthe trust agreement. Except as may otherwise be provided in theresolution or the trust agreement, the sinking or other similar fundmay be a fund for all bonds of the authority issued to financeprojects of a particular participating party without distinction orpriority of one over another. However, the authority, in anyresolution or trust agreement, may provide that the sinking or othersimilar fund shall be the fund for a particular project or projectsand for the bonds issued to finance a particular project or projectsand may, additionally, permit and provide for the issuance of bondshaving a subordinate lien with respect to the security authorized forother bonds of the authority, and, in such case, the authority maycreate separate sinking or other similar funds with respect to thesubordinate lien bonds. (c) Pay the operating and administrative costs of the authority,and the operating and administrative expenses of the conservancy incarrying out its responsibilities under this division.

32202. The authority may enter into contracts of sale with anyparticipating party covering any urban waterfront restoration projectfinanced by the authority. The purchase price pursuant to thecontract of sale shall be treated in substantially the same mannerand shall be at least sufficient to provide funds for all thepurposes specified in Section 32201 and may be paid in installments,together with interest on the unpaid balance, or otherwise, as may bemutually agreed and set forth in the contract of sale. All payments received by the authority under any installment salesor conditional sales contract shall be applied by the authoritysubstantially in the same manner as in Section 32201 in the case oflease payments or rental charges received by the authority.

32203. As an alternative to leasing or selling an urban waterfrontrestoration project to a participating party, the authority mayfinance the acquisition, construction, or installation of a projectby means of a loan to the participating party. The principal amount of the participating party's obligation, asborrower, shall be sufficient to provide funds for all the purposesspecified in subdivisions (a), (b), and (c) of Section 32201 and maybe paid in installments, together with interest on the unpaidbalance, or otherwise as may be mutually agreed by the authority andthe participating party and set forth in the loan agreement. Loansmade pursuant to this section may be secured or unsecured, in thediscretion of the authority. Section 32200 is not applicable to projects constructed with moneyloaned pursuant to this section.

32204. All moneys received pursuant to this division, whether asproceeds from the sale of bonds, notes, or other evidence ofindebtedness or as revenues, are trust funds to be held and appliedsolely as provided in this division. Any bank or trust company with which the moneys are depositedshall act as trustee of these moneys and shall hold and apply themfor the purposes of this division, subject to the resolutionauthorizing the bonds of any issue or the trust agreements securingthe bonds provide.

32205. Any holder of bonds, notes, or other obligations issuedunder this division or any of the coupons appertaining thereto, andthe trustee or trustees under any trust agreement, except to theextent the rights herein given which may be restricted by anyresolution authorizing the issuance of, or the trust agreementsecuring, the bonds, notes, or other obligations, may, either at lawor in equity, by suit, action, mandamus, or other proceedings,protect and enforce any and all rights under the laws of the state orgranted hereunder or under the resolution or trust agreements, andmay enforce and compel the performance of all duties required by thisdivision or by the resolution or trust agreement to be performed bythe authority or by any officer, employee, or agent thereof,including the fixing, charging,and collecting of the rates, rents, (continued)